The question at the back of every San Diego homeowner’s mind is always the same: what is the home value? Homeowners want the value of their San Diego home to rise over time. And in many cases, the home value will increase. However, the San Diego market can be volatile and sometimes takes a dramatic drop.
Even though the San Diego home value is always changing there are ways to estimate the value if you are thinking about selling the property in the near future.
On average, a San Diego homeowner can expect their home to increase in value by three percent each year. Of course, this is only true if they are in a market that allows for the appreciation of homes at a moderate level. If so, this is a good way for a home buyer to estimate what they could later sell their San Diego home for if they choose to.
Even though this is a solidly understood average, there can be drastic changes in the market. There are some markets that will see huge increases in a short amount of time. If the San Diego homeowner sees the value of their home jump drastically they may think about selling while the market is hot.
Past Sales and Trends
Even though the market is always changing, most markets will have similar fluctuations throughout the years. A good way to get an idea of where the San Diego market is heading is to look back at where it started. The previous changes in the market can help estimate the changes to come. If the average increase in San Diego home value has consistently been five percent, this trend is likely to continue.
These average trends should be taken with a grain of salt. Even though this shows the overall trends of the market it will not show the trends within certain neighborhoods. The home value from neighborhood to neighborhood can drastically change. New businesses and amenities may make major changes to the status in the San Diego market, as well.
To truly understand the value of a house the comparable homes need to be looked at. Comparable homes, sometimes called “comps,” are used to determine the listing price on a property. These comps will show what other homes in the area are selling for in the current San Diego market.
When searching for comparable San Diego homes there are very specific figures to focus on. The houses must match as much as possible. They have to be very close to each other within the neighborhood, as well. The most important part is to use new comps. Anything sale older than six months is no longer accurate.
Buying a San Diego house is an investment. It can be a scary investment, at that. Sometimes the market crashes leaving a homeowner with a home that they can no longer sell for a profit. While at other times, the market finds a sudden increase and the homeowner is able to sell for much more than the original purchase price. Estimating your San Diego home value can be difficult, but it can give a homeowner insight if they want to sell down the road.